INTL FCStone 2012 Annual Report Download - page 99
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Please find page 99 of the 2012 INTL FCStone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.INTL FCSTONE INC.Form10K 83
PART II
ITEM 8 Financial Statements and Supplementary Data
Credit facilities and outstanding borrowings as of September30, 2012 and 2011 were as follows:
(in millions)
Borrower Security Renewal / ExpirationDate
Total
Commitment
Amounts Outstanding
September30,
2012
September30,
2011
INTL FCStone Inc. Certain pledged shares October1, 2013 $ 95.0 $ 48.0 $ —
INTL Commodities Certain commodities assets January31, 2013 140.0 107.0 60.0
FCStone, LLC None April11, 2013 75.0 20.0 —
FCStone Merchants Certain commodities assets May31, 2013 75.0 43.2 —
FCStone Merchants Certain forward commodity contracts Terminated June2012 — — 1.9
FCStone Financial, Inc. Certain commodities assets Terminated August2012 — — 15.5
$ 385.0 $ 218.2 $ 77.4
During scal 2013, or shortly thereafter, $385 million of the
Company’s committed credit facilities are scheduled to expire.
e Company is currently in discussions with current and
potential lenders to renew, extend or rearrange these facilities.
While there is no guarantee that the Company will be successful
in renewing, extending or rearranging these agreements as they
expire, based on the Company’s liquidity position and capital
structure, the Company believes it will be able to do so. At
this time, the Company is unable to determine the duration,
applicable interest rates or other costs associated with the renewal
or replacement of these facilities.
NOTE 11 Commitments and Contingencies
Legal Proceedings
Certain conditions may exist as of the date the nancial statements
are issued, which may result in a loss to the Company but which
will only be resolved when one or more future events occur or
fail to occur. e Company assesses such contingent liabilities,
and such assessment inherently involves an exercise of judgment.
In assessing loss contingencies related to legal proceedings that
are pending against the Company or unasserted claims that may
result in such proceedings, the Company’s legal counsel evaluates
the perceived merits of any legal proceedings or unasserted claims
as well as the perceived merits of the amount of relief sought or
expected to be sought therein.
If the assessment of a contingency indicates that it is probable
that a material loss had been incurred at the date of the nancial
statements and the amount of the liability can be estimated, then
the estimated liability would be accrued in the Company’s nancial
statements. If the assessment indicates that a potentially material
loss contingency is not probable, but is reasonably possible, or
is probable but cannot be estimated, then the nature of the
contingent liability, together with an estimate of the range of
possible loss if determinable and material, would be disclosed.
Neither accrual nor disclosure is required for loss contingencies
that are deemed remote. e Company accrues legal fees related
to contingent liabilities as they are incurred.
In addition to the matters discussed below, from time to time
and in the ordinary course of business, the Company is involved
in various legal actions and proceedings, including tort claims,
contractual disputes, employment matters, workers’ compensation
claims and collections. e Company carries insurance that
provides protection against certain types of claims, up to the policy
limits of the insurance. During the years ended September30,
2012 and 2011, loss contingency accruals, not having a material
impact on the consolidated nancial statements, have been
recorded. In the opinion of management, possible exposure in
these matters in excess of the amounts accrued, is not material
to the Company’s earnings, nancial position, or liquidity.
e following is a summary of signi cant legal matters involving
the Company.
Securities Litigation
FCStone and certain officers of FCStone were named as
defendants in an action led in the United States District
Court for the Western District of Missouri on July15, 2008.
A consolidated amended complaint (“CAC”) was subsequently
led on September25, 2009. As alleged in the CAC, the action
purports to be brought as a class action on behalf of purchasers
of FCStone common stock between November15, 2007 and
February24, 2009. e CAC seeks to hold defendants liable
under Section10(b) and Section20(a) of the Securities Exchange
Act of 1934 and concerns disclosures included in FCStone’s
scal year 2008 public lings. Speci cally, the CAC relates to
FCStone’s public disclosures regarding an interest rate hedge,
a bad debt expense arising from unprecedented events in the
cotton trading market, and certain disclosures beginning on
November3, 2008 related to losses it expected to incur arising
primarily from a customer energy trading account. FCStone and
the named o cers moved to dismiss the action. e parties to
the litigation reached an agreement in principle to settle this
matter during May2012. e proposed settlement would be at
no cost to the Company after consideration of insurance, and is
subject to approval by the court.